Principles of Economics Spring 2019 A firm making sofas has the following income and cost data for one week: Sales (50 sofas/week at $1000 per sofa) .. $50,000 Less: Cost of goods (sofas) sold Variable cost of manufacturing sofas.. $20,000 Fixed manufacturing cost... ...$5,000... ..$25,000 Equals: Gross margin.. ..$25,000 Less: Selling and Administrative cost: Variable Selling and Administrative costs... ...$10,000 Fixed Selling and Administrative costs.. .....$5,000...... ..$15,000 Net income... $10,000 A. Determine the firms break-even quantity of sofas(15 Points)) B. Compute the Following measures(12 Points) ATC AFC AVC MC C. Determine the firm's new break-even quantity if it builds a new plant that raise fixed cost of manufacturing to $10,000 but decreases variable manufacturing cost to $300 per sofa. Assume that average variable selling expenses, fixed selling expenses, and that the selling price of sofas remain the same as in A